

[Federal Register: September 27, 2007 (Volume 72, Number 187)]
[Notices]
[Page 54959-54960]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27se07-105]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56479; File No. SR-MSRB-2007-02]


Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Notice of Filing and Immediate Effectiveness of Amendment to
Rule A-3, on Membership on the Board

September 20, 2007.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 9, 2007, the Municipal Securities Rulemaking Board (``MSRB''
or ``Board''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the MSRB. The MSRB
filed an amendment to the proposed rule change on September 17, 2007.
The MSRB has filed the proposal pursuant to section 19(b)(3)(A) of the
Act,\3\ and Rule 19b-4(f)(3) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change, as
amended, from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The MSRB is filing with the Commission a proposed rule change
consisting of an amendment to Rule A-3, on membership on the Board, to
permit a Board member to succeed him or herself in office for a second
consecutive term. The text of the proposed rule change is available on
the MSRB's Web site (http://www.msrb.org), at the MSRB, and at the

Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the MSRB included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The MSRB has prepared summaries, set forth in sections
A, B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Board has been reviewing its Administrative Rules and by-laws
to ensure that they are consistent with current good corporate
governance practices. Rule A-3, on membership on the Board, currently
provides, among other things, that no member of the Board may succeed
himself or herself in office and no broker-dealer representative or
bank representative may be succeeded by any person associated with the
broker, dealer or municipal securities dealer with which the member was
associated at the expiration of his or her term. The Board has
determined to modify this provision in the rule (as well as in By-Law
Article 3) to permit a sitting Board member to serve a second
consecutive term, through the standard nomination and election process.
The rule amendment does not establish a lifetime limit on the number of
terms a person could serve but does limit a person to serving two terms
in succession. Sitting and former Board members would be required to
undertake the same nomination and election process applicable to new
applicants for Board membership. The rule amendment also maintains the
existing prohibition on having a representative of a dealer or bank
immediately succeed the expiring term of another representative of the
same dealer or bank, other than in the case of a sitting Board member
succeeding him or herself.
2. Statutory Basis
    The MSRB believes that the proposed rule change is consistent with
section 15B(b)(2)(I) of the Act,\5\ which authorizes the MSRB to adopt
rules that provide for the operation and administration of the MSRB.
The MSRB believes that the proposed rule change is consistent with this
provision because it is concerned solely with the operation and
administration of the MSRB.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78o-4(b)(2)(I).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The MSRB does not believe that the proposed rule change will impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act since it only applies to the
operation and administration of the MSRB.

[[Page 54960]]

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The proposed rule change has become effective pursuant to section
19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(3) thereunder \7\ because
it is concerned solely with the operation and administration of the
MSRB. At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.\8\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(3).
    \8\ See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
For purposes of calculating the 60-day abrogation period, the
Commission considers the period to commence on September 17, 2007,
the date that the MSRB filed Amendment No. 1.
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to rule-comments@sec.gov. Please include

File Number SR-MSRB-2007-02 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-MSRB-2007-02. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all

written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the MSRB. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-MSRB-2007-02 and should be
submitted on or before October 18, 2007.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
Florence E. Harmon,
Deputy Secretary.
---------------------------------------------------------------------------

    \9\17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. E7-19023 Filed 9-26-07; 8:45 am]

BILLING CODE 8010-01-P
